What are crypto ATMs for cannabis retailers? Legal and grey-market cannabis retailers have always had an issue with banking services. Many can’t access standard banking services, like getting cash. Banks flag regular business transactions as risks when associated with cannabis. Fortunately, cryptocurrencies have filled the niche. And so has BankLine and a new Crypto ATM banking service for cannabis retailers.
With over 7,000 licensed cannabis retailers in the United States, BankLine has big plans for their Crypto ATMs.
What is Cryptocurrency?
Before figuring out how crypto ATMs help cannabis retailers, we need to know what cryptocurrencies are. According to economists, money gets its price in terms of the goods and services it can buy. We can demonstrate how money originates from barter. When all you have are the goods you produce, say chickens, you have to find someone willing to trade whatever they have (that you want) for your chickens. Suppose you need some cannabis. But the only person in town with cannabis is a vegetarian and not interested in trading weed for roast chicken.
Money solves this issue. But it wasn’t until economists understood how barter (direct exchange) gives way to indirect exchange (an economy with money) did we realize money went beyond a mere social construct. Historically, people have used gold and silver for exchange.
A cryptocurrency is a digital coin people can use to trade. But cryptocurrencies are worthless without the blockchain.
What is the Blockchain?
President and CEO of BankLine, Mar Ochab, says: “Cryptocurrency transactions are permanently recorded on the blockchain, providing an immutable and traceable record of transactions.”
And that is the appeal of crypto, particularly crypto ATMs for cannabis retailers. There is no need for a third-party trust relationship. A blockchain is a ledger, but it’s protected from interference, like security software platforms on the market that use cryptography to protect online assets.
A public blockchain is a peer-to-peer ledger in that transactions are recorded and cannot be changed without notifying everybody else. The person who invented Bitcoin said: “We have proposed a system for electronic transactions without relying on trust.”
But this isn’t quite right.
The blockchain shifts trust around. It attempts to replace trust in financial institutions with verification via an algorithm. In its pure form, cryptos ignore existing trust relationships and try to build their own. But BankLine merges the best of both worlds to make banking easier for cannabis retailers.
Crypto ATMs: A Solution to a Cannabis Industry Problem
There are over 30,000 Crypto ATMs in the United States. But U.S. financial institutions have been reluctant to accept cash from crypto ATMs inside cannabis retailers. Even if the retailers are 100% legal in that state.
That’s where BankLine comes in, meeting compliance rules that satisfy state and federal regulators. “BankLine’s tram has the knowledge and experience to help out clients stay compliant,” Mark says.
BankLine gives its clients access to FDIC-insured depository institutions without having to hide behind phony names or corporate numbers. Their accounts are titled in the business’s name and are exclusive to their activity.
“After 21 years serving in local and federal law enforcement, specializing in the financial services and banking sectors, I see the confluence of cannabis and cryptocurrency as a positive step forward.”
Crypto ATMs for Cannabis Retailers
Cryptos offer people a hedge against inflation. But they also provide cannabis retailers with a way around absurd banking rules. BankLine’s services offer cannabis retailers familiarity with financial institutions but with the blockchain’s security.